Total Loss
Insurance Glossary
A vehicle or property an insurer decides is not worth repairing, because the repair cost, sometimes combined with salvage value, meets or exceeds a threshold tied to its value. Instead of paying for repairs the insurer pays the actual cash value less the deductible. The threshold is fixed by state law in some places and left to insurer formula in others, and a totaled vehicle usually ends up with a branded or salvage title.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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